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Knowledge base

I sell second-hand jewelry on consignment: who is liable for the HBJOAT tax?

Short answer

Neither the depositor nor the seller is liable for the HBJOAT tax on the sale of a second-hand piece of jewelry.

Second-hand goods are excluded from the scope of this tax.

Why are second-hand jewels not taxable?

Article L. 471-27 of the Code of Taxation on Goods and Services specifies that retail sale constitutes a taxable event for HBJOAT products, with the exception of second-hand goods.

The Directorate General of Customs also confirms that, since January 1, 2009, the tax is no longer levied on second-hand products.

What about consignment sales?

In a consignment sale contract, the owner entrusts their jewelry to a professional responsible for selling it.

The fact that the sale is carried out by the consignee on behalf of the owner does not change the nature of the product: when it is indeed a second-hand piece of jewelry, its selling price is not subject to the HBJOAT tax.

Is the depositary's commission taxable?

No. The commission remunerates the service provided by the custodian.

Article L. 471-35 of the Code of Taxes on Goods and Services specifies that services relating to watchmaking, jewelry, goldsmithing and tableware products do not constitute a taxable event.

Concrete example

A second-hand necklace is sold for €1,000 through a consignment sale. The seller retains a commission of €200.

The HBJOAT tax due is:

  • €0 on the selling price of the jewelry; ;
  • €0 on the depositary's commission.

However, this operation may be subject to other tax rules, such as VAT applicable to the commission or margin depending on the chosen arrangement.

What if the product is new?

This exclusion only applies to second-hand goods.

When a new piece of jewelry is consigned for sale, the sale may fall under the HBJOAT tax. The liable party and the tax base must then be determined according to the contract and the accounting treatment of the transaction.

Official sources

  • Article L. 471-27 of the Code of Taxes on Goods and Services
  • Article L. 471-35 of the Code of Taxes on Goods and Services
  • Directorate General of Customs: tax for the development of the watchmaking, jewelry, and goldsmithing industries
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